iPhone manufacturer Foxconn Technology Group is building a new research and development facility in the southern Chinese city of Shenzhen to help Apple build prototypes of new products, Nikkei Asian Review reported Wednesday. According to two people familiar with the matter, plans call for the new facility to be located next to Apple’s upcoming research and development center in Shenzhen.

Foxconn is now reportedly looking to acquire land for the forthcoming project.

The contract manufacturer had reportedly started considering the new facility last October, after Apple announced its own research and development project in Shenzhen. That project should be completed later this year and will not only help Apple boost its Chain ties but work more closely with its Asian manufacturing partners and suppliers as well.

The Cupertino firm is building another research and development facility in Beijing’s technology incubation area in the Zhongguancun Science Park. In addition to the two R&D centers in China, Apple’s also partnered with Foxconn on a similar R&D project in the Indonesian city of Jakarta in an effort to to accelerate its expansion into the Southeast Asia region.